Revered Sydney pub The Oaks Hotel in Neutral Bay for sale for $175m

James MacSmith

First published 02 August 2022, 2:41pm

The iconic beer garden.

One of Sydney’s most revered drinking holes, The Oaks Hotel in Neutral Bay is up for sale for the first time in 50 years and is expected to sell for around $175m.

The long-time north shore drinking establishment, best known for its bucolic beer garden, is likely to smash the sales record for a pub with several of the industry’s biggest players possibly set to feature in bidding.

Billionaire pub baron Arthur Laundy has been very active of late in terms of hotel purchases, while there has also been much talk of hospitality tsar Justin Hemmes looking to expand his empire too. The Endeavour Group whose shareholders include hotel magnate Bruce Mathieson is another entity that could feature, while Iris Capital’s Sam Arnaout, who owns Alice Springs’ and Canberra’s casinos has also been mentioned.

The Oaks Hotel, Neutral Bay.

The pub has been brought to market by JLL Hotels and Hospitality Group, who have proclaimed The Oaks “Australia’s greatest pub” which is sure to ensure debate over a schooner or two across the country.

“The national icon is being offered by private owners of 50 years – the Thomas family – with patriarch David ‘Taffy’ Thomas ready to pass custodianship of this remarkable asset to the next generational owner,” a JLL media release read.

MORE: NRL star Latrell Mitchell’s new $4.3m record-breaking home

Newcastle towers given green light

The Oaks Hotel, Neutral Bay is an All Star pub.

“The family’s ownership of the hotel commenced in 1975 when David acquired the leasehold interest in the hotel, with support from his mother Alala, from Tooth & Co.

“They have lovingly and meticulously expanded and grown the landmark over nearly 50 years of family operation. Idolised for the famous beer garden and 80-year-old English Oak tree, the venue today represents one of the largest multifaceted hotels in the country.

“The hotel remains the drinking establishment of choice for many famous identities and sports stars and houses the John Meillon OBE Bar, named after the renowned actor.”

Craig Laundy with his father Arthur Laundy at their pub, Marsden Brewhouse in Marsden Park. Picture: Tim Hunter.

The Oaks sits on a prominent 2,188 sqm site with a B4 Mixed Use zoning and planning guidelines allowing for up to a 5-storey development (STCA), highlighting the value-add potential of the asset.

The venue includes Taffy’s Sports Bar, Alala’s Cocktail Bar, Bar and Grill Restaurant, famous large beer garden, gaming room with 30 poker machines, extensive first floor function spaces and high-end retail bottle shop.

“Unlike other asset-classes that have seen cost of debt slow market momentum, the hotel market has continued unabated with nearly $2 billion of capital flowing into the sector in the past 12 months and trade rebounding strongly from initial COVID-19 challenges,” according to JLL Hotels and Hospitality Group.

The Group rates the asset as ‘one of the very best in the hotels class’.

“As in all real estate sectors the premier assets often only come to market once in a lifetime, which is even more prevalent in the highly protected hotel industry where assets of this scale and quality will simply never be approved or replicated again in high-end Sydney demographic locations – we’re fundamentally talking about one of the very best hotels in the asset class,” JLL Managing Director John Musca said.

Family representative Andrew Thomas said, “On the back of a spate of unsolicited approaches it just feels like the right time for the family to move on and we’ll leave The Oaks with fond memories and many friends.

MORE: Iconic cafe that changed Sydney forever for sale